Heritage Cannabis Announces Corporate Update and Highlights Significant Sales Growth and New Products

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), is pleased to provide an update on recent activities including sales, new products, and the Company’s expansion into the United States.

Recent Sales Activities and Market Performance

• For the 12 months beginning January 25, 2021, Heritage subsidiary Premium 5 produced $19.6 million in revenue and exceeded milestone expectations set at the time of the acquisition. This represents 113% growth from Heritage’s fiscal 2020 of $9.2 million in revenue
• Record sequential sales growth of approximately 30% over sales in the fourth quarter, based on shipped orders
• Became the only third party listed brands on Canopy Growth’s medical platform Spectrum Therapeutics, Canada’s second largest medical platform
• Received purchase orders to be listed on another large medical platform with products expected to launch as early as March
• #2 in Canadian Sales of Concentrates (up from #4 in Q4) and #5 in Canadian Sales of Oils (up from #6 in Q4)¹
• #2 vape brand in British Columbia
• In Ontario, 19 stock keeping units (“SKUs”) were available in Q1 through the OCS and an additional nine will be added this spring for a total of 28 available products
• As of November 2021 in Ontario, in the concentrates excluding hash category Heritage has 17% market share and is the #1 selling concentrate company in the category
• Added 45 net new SKU listings across the country accelerating sales growth in all key product categories

“We are continuing to see a strong positive response to our suite of products across the country, accompanied by growing sales figures – topping our prior quarter by approximately 30% in Q1 which is our second quarter delivering over 20% sequential growth,” commented David Schwede, CEO of Heritage. “We previously signalled continued growth in sales and new product development, and we are delivering quarter after quarter as our platform outpaces other key market players.”

Along with new product launches and strong provincial re-orders, Heritage continues to see advancements in both market penetration and new listings across the provinces. Recently Heritage products became available for purchase on one of the largest online medical sales platforms in Canada - Canopy’s Spectrum Therapeutics, and received purchase orders to launch on another large online platform as early as March. These additions are setting the stage for further growth in 2022.